Texas Insurance Code

§ 823.008 — STANDARD FOR DETERMINING SURPLUS REASONABLENESS AND ADEQUACY

IN § 823.008Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part B. ORGANIZATION OF REGULATED ENTITIES · Ch. 823. INSURANCE HOLDING COMPANY SYSTEMS · Art. A. GENERAL PROVISIONS

Statute text

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(a)In determining whether an insurer's policyholders' surplus is reasonable in relation to the insurer's outstanding liabilities and adequate to the insurer's financial needs, the following factors, among others, shall be considered:

(1)the size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in force, and other appropriate criteria;

(2)the extent to which the insurer's business is diversified among the different lines of insurance;

(3)the number and size of risks insured in each line of insurance;

(4)the extent of the geographical dispersion of the insurer's insured risks;

(5)the nature and extent of the insurer's reinsurance program;

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Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.